There’s a new game in Vegas I’ve been reading about. It’s called Pokejackarratlette.
Apparently, the odds are NOT in the houses favor. In fact, the odds are ridiculously in the favor of the
players. 7 to 3, actually.
But the payouts are super, super small. Like you only win 10% of your bet if you win. (But on the flipside,
you also only lose 10%.)
As you can imagine, the new game is only sort of gaining traction. When you stack up winning 10% next
to a craps table that pays 3700% if you pick the right number, well it doesn’t exactly get your blood
going.
So Pokejackarratlette isn’t the most popular game, but it’s gaining a cult following. The most patient and
intelligent players are attracted to it.
What they know is that with odds like that – even with small payouts – you’ll make a lot of money over
time. In fact, you literally cannot lose if you play long enough.
Pokejackarratlette is like investing in broad-based index funds (like an S&P 500 Index fund).
Every other casino game is individual stocks.
Investing in broad-based index funds (like Financial Zen Investment Management does) gives you a rate
of return that is more or less predictable over time.
It won’t beat the next Facebook or Amazon, but it will give you a steady return over the long-term.
Betting on individual stocks is not predictable or reliable, but it can certainly be more exciting, especially if
you stumble on the next Google.
But in order to find Prince Google, you’re going to need to kiss a lot of frogs. And if you kiss too many
frogs, you might not have enough money left to woo Prince Google.
So we don’t use individual stocks in our portfolio because they aren’t reliable.
Creating a lifetime of passive income from your savings requires us to know what we’re going to get.
And you can’t do that buying individual stocks.
